The Relative Cost of Bandwidth Around the World

The text discusses how networks operate and the relative costs of internet connectivity in different parts of the world. It explains that the internet is a vast network made up of smaller networks, which can be connected directly or via an intermediary network known as a "transit provider". At the core of the internet are Tier 1 network providers, who all peer with one another and provide connectivity to every ISP around the world. The text also delves into how CloudFlare buys bandwidth from various transit providers and peering directly with other networks is typically free. It further compares regional differences in transit pricing and peering rates, concluding that Europe has the lowest effective price of bandwidth due to its high rate of peering and low transit costs.

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